When to hold off on credit reports

The refi boom and soaring profits of last year are receding into distant memory. Is it time to pay more attention to expenses?

Good afternoon! Was this newsletter forwarded to you? Sign up here. Hello, LOs!   Rates are creeping up, and gain-on-sale margins are compressing. The refi boom and soaring profits of last year are receding into distant memory. Is it time to pay more attention to expenses?   This week, Joe Garrett and Mike McAuley brought up expenses for loans that didn't make it across the finish line in their weekly report.   "Do you know exactly how much you've paid for appraisals (and credit reports) on loans that never closed? Do you track it by loan officers and branches? If you don't track this, you might become sick to your stomach if you found out how much money you flushed down the toilet.  We had one client a number of years ago that had spent a little over $750,000 on appraisals for loans that never closed, all in one year!"   The Consumer Financial Protection Bureau also receives complaints about credit reporting, and it's by far the most frequent kind of complaint it receives. The CFPB has heard complaints about credit reporting from about 250,000 disgruntled consumers this year so far. About 21,000 thousand of those have been specifically regarding mortgage lenders.   Most of the complaints are related to some unspecified "trouble during payment process," problems applying for a purchase mortgage or refi, or problems paying an existing mortgage. A small sliver of the complaints were related to closing a mortgage.   I do wonder if some lenders will look at reducing expenses related to extra credit reports in terms of the actual expense and the potential headache if a complaint draws undesired attention from the CFPB.   How do you decide when to run a credit report and when to hold off? How do you track expenses on loans that don't close? Have there been any changes to those processes in recent months?   Georgia Kromrei Senior Mortgage Reporter, HousingWire FHLBanks under pressure to invest more in affordable housing   The share of FHLBanks' income toward affordable housing is expected to increase from 10% to 15% in the 2023 cycle, according to Teresa Bryce Bazemore, CEO of Federal Home Loan Bank of San Francisco. Save Time and Close More Loans with Powerful Broker Technology Maximize business opportunities in today's booming housing market. Black Knight's LoanCatcher℠ loan origination system (LOS) is an affordable, cloud-based LOS that helps mortgage brokers originate, price and close deals faster. Schedule a demo today. Sponsored by Black Knight Why lenders should build a referral-based business   HousingWire recently spoke with John G. Stevens, President at SRE.com, about the challenges mortgage loan officers and brokers face as the market continues to shift toward purchase money business and how human-assisted eCommerce can help them win more business. Presented by SRE.com Obstacles to tech adoption & the question of appraisal bias   During a panel on residential appraisals, experts posed technology as a way to make appraisals more efficient and less subjective, as regulators take steps to understand and counteract bias. HW+ Premium Content Rising rates, tax questions driving MSR sales surge   With interest rates expected to rise as the Federal Reserve taps the brakes on the economy to check inflation, transaction activity in the MSR secondary market is projected to remain robust — at least through the balance of the year, according to industry experts. HW+ Premium Content HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039 Manage preferences

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